Let me explain. Sometime ago I was around some kids and picked up a good business lesson.
There were some new kids trying to make friends in a crowd. The kids that said hi and found similar traits connected well and hung out for a log time. Kids that formed bonds via sharing treats like cookies didn’t last long.
The moment you ran out of cookies the connections seemed to drop off. After that anyone with more cookies seemed to get attention. So it become more about the cookies and less about making friends.
Then again these were 3-4 year olds. It was always going to be about the cookies.
In business we look at deals and discounts to get new clients or to get existing clients to buy more.
In a recent promotion for a client we used a deals site to generate new interest. Just as the cookie theory went a lot of clients came in the first few days and the interest died out fast.
Also the new deal clients were expecting more discounts at the store. There was very little extras sold and the overall the ‘deal’ was a financial loss with almost no gain in terms of loyalty.
I’m not saying to drop the deals altogether. What I’m saying is you have to find the right deals that work for you because deal clients come and go but you have to remain in business.
What is more important is finding the right clients with similar traits and personality who will hang out with you longer (loyalty).